Property Insurance

JUNE IS the official start of hurricane season in the United States, and while the year's first tropical storm is nowhere in sight, the news is already bad. Computer models suggest that a warming Atlantic Ocean and a possible El Nino in the Pacific this summer could cause the season to be worse than usual - with perhaps 15 named storms, including eight hurricanes, instead of the customary 10 storms and six hurricanes. There are no guarantees that any of this will come to pass, of course, but the forecasters have a pretty good record.

Most people would likely deem it fair that Americans who choose to live in vulnerable areas — such as the Florida coast, a major earthquake fault or a fire-prone California canyon — should pay more for property insurance than those who live in safer areas. Some in Congress disagree, however, and in recent weeks they've started to move forward with a bill called the Homeowners' Defense Act, introduced by Rep. Ron Klein, a Florida Democrat. The bill would be awful for Maryland and much of the rest of the country.

Dear Mr. Azrael:I would like to know if there is any way that I can take over and manage my own escrow account. (My lender) recently did not pay my town taxes, and I have gone through a lot of hassle trying to rectify this problem. I would like to know what the rights of a consumer are when the mortgage company is not handling an escrow account properly.Barbara E. SnyderPerryvilleDear Ms. Snyder:Many mortgage lenders require the borrower to maintain an escrow account to pay real estate taxes and property insurance.

Because of its proximity to the Atlantic and its potential vulnerability to hurricanes, the city of Baltimore will pay nearly 30 percent more for property insurance this year to cover a wide range of public buildings, from schools to City Hall, officials said yesterday. Predictions that this summer's season could prove more devastating than last year's - when Katrina ravaged the Gulf Coast - have driven up the cost of coverage and forced the city to negotiate a new policy now rather than wait for potentially higher premiums this fall.

LOS ANGELES - Terrorism insurance is no longer an option for many businesses. It's a requirement. Lenders are asking companies, especially real estate investment firms, for proof of terrorism coverage. Though the insurance is not legally required, companies are still forced to spend up to 25 percent more in annual premiums. While insurance brokers say the cost of terrorism insurance is going down, many companies are struggling to pay for the risk of a potential terrorist attack. "There are a lot of square-peg, round-hole things going on right now," said Stacy Stevens, a senior vice president of Lowe Enterprises Inc. "Much of the industry has been driven by the lending community, and I'm not sure lenders know what exactly they're requiring of us."

Because of its proximity to the Atlantic and its potential vulnerability to hurricanes, the city of Baltimore will pay nearly 30 percent more for property insurance this year to cover a wide range of public buildings, from schools to City Hall, officials said yesterday. Predictions that this summer's season could prove more devastating than last year's - when Katrina ravaged the Gulf Coast - have driven up the cost of coverage and forced the city to negotiate a new policy now rather than wait for potentially higher premiums this fall.

Could you afford to replace everything if your rented apartment were burglarized or caught on fire? Studies have shown that nearly two-thirds of the estimated 81 million Americans living in rental properties don't have renters' insurance. But they should. Landlords carry insurance on their rented properties, but a tenant's personal belongings aren't included in that coverage. The average renters' insurance policy costs between $10 and $12 per month for $30,000 in property coverage and $100,000 in liability coverage.

Liberty Mutual Insurance Co. has filed suit against Baltimore businessman Edwin F. Hale Sr. and his port-related businesses, alleging Mr. Hale owes $1.3 million for insurance coverage provided by Liberty between 1985 and 1989.The suit was filed this week in U.S. District Court in Baltimore against Port East Transfer Inc., Hale Development Corp., E. F. Hale Properties and Mr. Hale.The Hale organization already has paid approximately $4.5 million to Liberty for the period in question, according to Mr. Hale's attorney, James Gast.

Most people would likely deem it fair that Americans who choose to live in vulnerable areas — such as the Florida coast, a major earthquake fault or a fire-prone California canyon — should pay more for property insurance than those who live in safer areas. Some in Congress disagree, however, and in recent weeks they've started to move forward with a bill called the Homeowners' Defense Act, introduced by Rep. Ron Klein, a Florida Democrat. The bill would be awful for Maryland and much of the rest of the country.

HOMEOWNERS IN as many as 25 states could find property insurance covering damage from catastrophic storms and earthquakes more readily available if a bill passed this month by a House subcommittee becomes law.The bill -- titled the Homeowners Insurance Availability Act -- is intended to backstop private-market and state government efforts to cover massive property damage claims after hurricanes and earthquakes. Though it would have most immediate effect in Florida, California and Hawaii -- where private insurers continue to withdraw from the home property sector in the wake of costly natural disasters in the last decade -- the bill would also have potential impact in nearly two dozen other coastal and interior states.

Could you afford to replace everything if your rented apartment were burglarized or caught on fire? Studies have shown that nearly two-thirds of the estimated 81 million Americans living in rental properties don't have renters' insurance. But they should. Landlords carry insurance on their rented properties, but a tenant's personal belongings aren't included in that coverage. The average renters' insurance policy costs between $10 and $12 per month for $30,000 in property coverage and $100,000 in liability coverage.

JUNE IS the official start of hurricane season in the United States, and while the year's first tropical storm is nowhere in sight, the news is already bad. Computer models suggest that a warming Atlantic Ocean and a possible El Nino in the Pacific this summer could cause the season to be worse than usual - with perhaps 15 named storms, including eight hurricanes, instead of the customary 10 storms and six hurricanes. There are no guarantees that any of this will come to pass, of course, but the forecasters have a pretty good record.

CALL IT THE one-stop shop. Call it a real estate supermarket. Call it "packaging" of services. But whatever you call it, get ready to see your real estate broker offer a growing list of in-house services from home loans to all-inclusive fixed-fee settlements. In a move that has gained relatively little public notice, the National Association of Realtors is urging its million-plus members to explore ancillary services including title, settlement, and "packages of services to consumers for their complete real estate related needs."

By Nancy Jones-Bonbrest and Nancy Jones-Bonbrest,SPECIAL TO THE SUN | November 14, 2004

Shortly after Heather Cohill signed a contract to buy a house in Catonsville, she began shopping for homeowners insurance. Like most people, she started with the company that provided her automobile insurance, hoping for a discount. When she was turned down because the home was a little more than 50 years old, Cohill began calling other insurance companies. After being turned away two more times - because of the age of the house or the age of the furnace, which is more than 35 years old - she found a Nationwide Mutual Insurance Co. agent who was willing to write a policy for her. She pays almost $900 a year for the insurance.

LOS ANGELES - Terrorism insurance is no longer an option for many businesses. It's a requirement. Lenders are asking companies, especially real estate investment firms, for proof of terrorism coverage. Though the insurance is not legally required, companies are still forced to spend up to 25 percent more in annual premiums. While insurance brokers say the cost of terrorism insurance is going down, many companies are struggling to pay for the risk of a potential terrorist attack. "There are a lot of square-peg, round-hole things going on right now," said Stacy Stevens, a senior vice president of Lowe Enterprises Inc. "Much of the industry has been driven by the lending community, and I'm not sure lenders know what exactly they're requiring of us."

Homebuyers beware: Insurance claims history can come into play for those seeking to purchase or sell a home. "Claims history is definitely a major bump in the road," said Beverly Rasmussen, a Realtor with ReMax100 and chair of the Maryland Association of Realtors' state legislative committee. A recent sale almost fell through because of a prior claim on the property, Rasmussen recalled. The sellers had filed a claim after a storm damaged the house. That claim was a red flag for potential insurers, who deemed the property high-risk.

A NEW consumer protection bill on Capitol Hill refocuses attention on an issue that touches millions of homeowners: their sometimes rocky relationships with the firms that "service" their mortgages. Servicing means administering the monthly mechanics of your home loan - sending out statements, keeping track of your payments, assessing late fees, making disbursements from your escrow account, canceling private mortgage insurance, responding to complaints and requests for information. Your servicer may well be a different company from the one that made you the loan.

CALL IT THE one-stop shop. Call it a real estate supermarket. Call it "packaging" of services. But whatever you call it, get ready to see your real estate broker offer a growing list of in-house services from home loans to all-inclusive fixed-fee settlements. In a move that has gained relatively little public notice, the National Association of Realtors is urging its million-plus members to explore ancillary services including title, settlement, and "packages of services to consumers for their complete real estate related needs."

A NEW consumer protection bill on Capitol Hill refocuses attention on an issue that touches millions of homeowners: their sometimes rocky relationships with the firms that "service" their mortgages. Servicing means administering the monthly mechanics of your home loan - sending out statements, keeping track of your payments, assessing late fees, making disbursements from your escrow account, canceling private mortgage insurance, responding to complaints and requests for information. Your servicer may well be a different company from the one that made you the loan.

In a major expansion plan, the Johns Hopkins University has signed a letter of intent to buy the sprawling St. Paul Cos. campus that straddles the city-county line in Mount Washington. Already a major property owner and the city's largest private employer with 35,000 people, Hopkins expects to keep growing. Assuming the deal is completed, Hopkins plans eventually to use just under half of the space in five major buildings on the 68-acre campus for administrative offices for the school and the hospital, a Hopkins official said yesterday.